This Article is From Apr 11, 2022

Ruchi Soya To Be Renamed As Patanjali Foods; Shares Edge Lower: 10 Points

Edible oil major Ruchi Soya said that its board has decided to change the company's name to Patanjali Foods Ltd.

Ruchi Soya To Be Renamed As Patanjali Foods; Shares Edge Lower: 10 Points

Shares of Ruchi Soya nudge 0.74 per cent lower to settle at Rs 918.05 on the BSE.

New Delhi: Edible oil major Ruchi Soya said that its board has decided to change the company's name to Patanjali Foods Ltd. In a regulatory statement released on Monday, the Patanjali-Ayurved backed firm also stated that the decision would be subject to getting approvals from the Registrar of Companies and others. Ruchi Soya also said the board -- at a meeting held on April 10 -- accorded its in-principle approval for evaluating a "most efficient mode" to enhance synergies with Patanjali Ayurved Ltd and authorise company's officials to "finalise" or "deliver" any such proposed transaction (if any).

Here's Your 10-Point Cheat-Sheet To This Big Story:

  1. Shares of Ruchi Soya nudge 0.74 per cent lower to settle at Rs 918.05 on the BSE. It touched an intraday high of Rs 999, rising over 8 per cent, before settling in the red. On NSE, it finished 0.56 per cent lower at Rs 918.25.

  2. The stock had jumped 12.94 per cent on Friday after its shares were listed in accordance with the follow-on public offer (FPO).

  3. "6,61,53,846 equity shares of Rs 2 each fully paid up of Ruchi Soya Industries are listed and admitted for trading on the exchange with effect from Friday, April 08, 2022," a BSE notice released on Thursday showed.

  4. Before this, Ruchi Soya had informed stock exchanges on Tuesday that it has approved the allotment of 6,61,53,846 equity shares for an amount aggregating to Rs 4,300 crore pursuant to the FPO.

  5. The company had fixed the FPO issue price at Rs 650 per share.

  6. The offer was open between March 24 and March 28.

  7. However, in an uncommon move, markets regulator SEBI, on March 28, had asked bankers of Ramdev-led Patanjali group's Ruchi Soya to give an option to investors to withdraw their bids in its FPO.

  8. Securities and Exchange Board of India had also cautioned the company about the "circulation of unsolicited SMS" about the share sale.

  9. The FPO closed on March 28, and the withdrawal window was open for two days till March 30, as per SEBI directives.

  10. Nearly 97 lakh bids were withdrawn by FPO investors after SEBI directed Ruchi Soya to give investors the option to withdraw their bids, sources had told news agency PTI.



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